Beginning of Essay
In exploring monetary policy in the United States, it is essential to define what is meant by monetary policy. Monetary policy can be defined as the policy decisions and actions by the Federal Reserve System (Fed) that affect the banking system and money supply. ....

Middle of Essay
.... of over 10,000 commercial banks. The organization of the Fed is included in the Appendix to this paper. The Board of Governors is the most important group within the Fed. The Board consists of seven members, each appointed for 14 years by the President of the United States. The chair of the Fed, also appointed by the President, has a term of 4 years, and is sometimes said to be the second most powerful man in the country. The Fed is an inde-pendent agency, and thus does not take orders from either the President or Congress. The US is divided into 12 Federal Reserve districts, each having its own Federal Reserve bank. (These districts ca ....